Opponents Appeal Offshore Wind Contracts At Jersey Shore

TRENTON, NJ — South Jersey local anti-offshore wind groups Defend Brigantine Beach and Downbeach (DBB) and Protect Our Coast New Jersey (POCNJ) recently announced that they had filed notices of appeal against the New Jersey Board of Public Utilities (NJBPU) in NJ Appellate Court with regards to the two recent NJBPU Orders granting Offshore Wind Renewable Energy Certificate (OREC) contracts to offshore wind project developers Attentive Energy LLC and Leading Light Wind LLC.

According to a joint news release from the two groups, the contracts entitle Attentive Energy and Leading Light Wind to receive payments averaging more than 15 cents/kwh for 3742 MW of power over 20 years, compared with the 6 cents/kwh wholesale price of power available to state utilities.

The release claims that the BPU conducted its solicitations and award of contracts to offshore wind developers in secrecy with no opportunity for public involvement until they issued a final order. “Even then the basis for its decision is hidden from public view with the most critical information redacted from the public record,” the release reads.

“If these awards are allowed to stand, residents throughout the state could pay up to $20 billion extra for power and see their already high bills increase by up to 20% or more," said Keith Moore, government affairs director for Defend Brigantine Beach. “Besides the cost to residents, the rate impacts to commercial and industrial users will be severe, up to 25 and 30% respectively. Many businesses may have to close under that financial pressure.”

“Based on what little has been revealed, it is clear that the NJBPU and its consultants have deliberately and improperly chosen to use hypothetical benefits to future global populations from reduced carbon emissions at an extremely high value to justify the exorbitant prices for power from these projects, as it has done previously as well. This is a clear violation of the law which mandates that consideration of such benefits be confined to the state,” said Edward O’Donnell of Whitestrand Consulting, who has prepared a report in support of the appeal.

The groups say that the economic cost of the projects will far outweigh the benefit of any jobs created by these projects in the state, the substantial majority of which will be temporary during the construction period.

“New Jersey rate and taxpayers will pay excessively with no discernible benefit. It’s mind boggling that the NJBPU would make this move now, raising rates so significantly at a time when so many New Jersey families are struggling just to make ends meet. It is a clear violation of the NJBPU’s mission to protect the ratepayers by keeping rates low,” said POCNJ President Robin Shaffer. “The extreme burden will be placed on New Jersey residents when they see their electric bills skyrocket over the next few years. Additionally the higher electricity costs could prove a hardship that many small businesses cannot afford.”

It is expected that the case will be heard by the NJ Appeals Court over the coming year, with a decision coming down in late 2024 or early 2025.